Climate and Clean Tech | December 15, 2021

Harley-Davidson rides into electric future with LiveWire spin-off

Amy Cortese
ImpactAlpha Editor

Amy Cortese

ImpactAlpha, Dec. 15 – Another icon of the fossil fuel-era is spinning off a “ReNewCo” to reap the rich valuations and easy access to capital of leaders in the net-zero disruption.

Harley-Davidson is taking its LiveWire electric vehicle division public via a special purpose acquisition company, or SPAC, backed by AEA Investors LP and Bridges Fund Management. Harley-Davidson will own about three-quarters of the new company when the merger closes next year. 

Demand shift

The customer base for Harley-Davidson’s gas-powered “hogs” is aging as a new generation seeks out electric-powered bikes, scooters and motorcycles from a raft of well-funded startups. “LiveWire will be able to operate with the same agility and speed as a startup,” Harley-Davidson’s Jochen Zeitz toldThe Wall Street Journal.

LiveWire will plow the estimated $545 million raised in the spinoff into product development, manufacturing and distribution and estimates sales of electric models could reach $3 billion by 2030. Harley-Davidson had revenues of $4 billion last year.